Legal Question in Business Law in California

We had a client who we sent a reimbursement check to. Now it is over a year later and she has sent us an email stating she never cashed the check and needs us to write her another. It was for a large amount and we do not have that amount of money at our finger tips. What are our obligations if she never cashed the check and what are the statute of limitations and is there a time frame ? Thank you.


Asked on 5/08/10, 7:30 am

1 Answer from Attorneys
Anthony Roach Law Office of Anthony A. Roach

Generally, a check goes stale in 180 days, unless stated otherwise on the check. The statute of limitations for her to sue you on a breach of an oral contract is 2 years. If it is a contract founded upon an instrument in writing, the statute of limitations is 4 years. If it is upon an open book account, the statute of limitations is also 4 years.

If you wrote her a check, and the check didn't clear, then you were legally required to keep a balance to cover that check. If you wrote a check to someone, and spent that money elsewhere, you could face criminal trouble, in addition to a civil lawsuit. If she has the check, and it has gone stale, she should return it to you before you issue her another check. If she did not receive the check, and it is missing, you need to stop payment and issue another check.

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Answered on 5/14/10, 2:05 pm


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